Bloomberg reports that both Lehman Brothers and Merrill Lynch have cause for celebration - the LBO market is booming and both firms have been able to capitalise.
Advising buyout firms has once again become big business, with buyout and private equity firms spending $69.9bn on acquisitions so far this year, compared to just $28.3bn 12 months ago.
Merrill has advised on $29.2bn of LBOs this year, up five-fold from last year. Lehman has worked on 12 deals with a combined value of $20.6bn. CSFB come in third, advising on deals worth $18.87bn and JP Morgan is fourth at $15.62bn.
Bloomberg quotes Michael Madden, a partner in buyout firm Questor Management, who said that advising buyout forms is 'one of the few bright spots in the industry. Investment banks are increasing their efforts to stay on top of clients. They're showing them ideas and showing them creative financial options'.